Coal India, Bajaj Finserv among top stocks to buy; Charts show weakness in Nifty from current levels

On daily charts the index has formed a small bearish candle and it also formed a lower high formation on intraday charts which supports further weakness from the current levels

Coal India, Bajaj Finserv among top stocks to buy; Charts show weakness in Nifty from current levels
Auto, IT, FMCG and Metal indices registered profit booking at higher levels whereas some buying was seen in selective Energy stocks. Image: Reuters

By Shrikant Chouhan

The benchmark indices witnessed profit booking at higher levels on Tuesday, the NSE Nifty 50 corrected over 150 points while the BSE Sensex ended 508 points down. Among sectors, Auto, IT, FMCG and Metal indices registered profit booking at higher levels whereas some buying was seen in selective Energy stocks. Technically, on daily charts the index has formed a small bearish candle and it also formed a lower high formation on intraday charts which supports further weakness from the current levels. For the traders now, below 16150/54200 levels, the short term texture is weak. Below which, the Nifty/Sensex could retest the level of 16000-15950/53700-53500. On the flip side, if indices succeed to trade above 16150/54200 then it could touch the level of 16225-16250/54500-54600.

Technical stocks to buy

Muthoot Finance
BUY, CMP: Rs 1,015.25, TARGET: Rs 1,070, SL: Rs 990

The stock had witnessed a quite strong downward movement over the past few months. However, on the monthly scale it has found support around its important retracement zone. As a result, the pullback rally from the current levels is very likely for an up move in the coming sessions.

Bajaj Finserv
BUY, CMP: Rs 11,864.8, TARGET: Rs 12,450, SL: Rs 11,620

The counter is seen trading in a rectangular range from the last few weeks. However, the bullish activity on daily charts near its upper boundary of the trading range indicates stock is likely to start a fresh leg of upward movement in the coming trading sessions.

Coal India
BUY, CMP: Rs 193.9, TARGET: Rs 205, SL: Rs 189

The stock is trading in a rising channel constantly. The higher high and higher low chart formations are apparent in the counter. Additionally, trend indicators such as MACD and ADX are showing bullish strength for the counter. Therefore, upward movement from the current level is very likely to remain in the near term.

Jubilant FoodWorks
BUY, CMP: Rs 578.2, TARGET: Rs 610, SL: Rs 565

The stock has shown a remarkable rally from recent lows in the last few weeks and the trend of the stock is still in the rising direction. The higher high and higher low series chart formation is evident in the counter. Hence the formation is indicating a bullish continuation pattern to continue in the near future.

(Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities, Views expressed are the author’s own.)

Get live Share Market updates and latest India News and business news on Financial Express. Download Financial Express App for latest business news.

Photos